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Banca Monte dei Paschi di Siena SPA (IT:BMPS)
:BMPS
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Banca Monte dei Paschi di Siena SPA (BMPS) AI Stock Analysis

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IT:BMPS

Banca Monte dei Paschi di Siena SPA

(LSE:BMPS)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
€7.50
▼(-2.85% Downside)
The stock score is primarily driven by strong valuation indicators, with a low P/E ratio and high dividend yield indicating potential undervaluation and income opportunities. However, financial performance is affected by profitability volatility and balance sheet concerns. Technical indicators suggest a neutral market sentiment, with no strong momentum in either direction.

Banca Monte dei Paschi di Siena SPA (BMPS) vs. iShares MSCI Italy ETF (EWI)

Banca Monte dei Paschi di Siena SPA Business Overview & Revenue Model

Company DescriptionBanca Monte dei Paschi di Siena SPA (BMPS) is one of the oldest banks in the world, headquartered in Siena, Italy. The bank operates primarily in the financial services sector, offering a wide range of products and services, including retail banking, corporate banking, asset management, and insurance. BMPS serves individual customers, small and medium-sized enterprises (SMEs), and large corporations, providing services such as loans, mortgages, savings and investment products, payment services, and financial consultancy.
How the Company Makes MoneyBMPS generates revenue through various channels, primarily by earning interest on loans and mortgages extended to customers. The bank's core revenue streams include interest income from its lending activities, which typically constitutes the largest portion of its total revenue. Additionally, BMPS earns fees and commissions from the provision of financial services, such as account maintenance, transaction fees, and advisory services. The bank also generates income from its asset management division through management fees on investment products and mutual funds. Partnerships with other financial institutions and companies enhance its service offerings and expand its customer base, contributing to revenue growth. Furthermore, BMPS may also benefit from investment income through its securities portfolio. Overall, the combination of interest income, service fees, and investment returns underpins the bank's financial performance.

Banca Monte dei Paschi di Siena SPA Financial Statement Overview

Summary
Banca Monte dei Paschi di Siena SPA exhibits strong revenue growth and positive cash flow trends, highlighting a solid financial foundation. However, volatility in net income and a low equity ratio pose risks to profitability consistency and balance sheet stability.
Income Statement
72
Positive
Banca Monte dei Paschi di Siena SPA has demonstrated strong revenue growth, particularly from 2023 to 2024, with a significant increase from the previous year. The gross profit margin remains robust, indicating effective cost management. However, net income has been volatile, and there was a notable decrease in net profit from 2023 to 2024, highlighting profitability concerns despite revenue growth.
Balance Sheet
68
Positive
The company has a moderate debt-to-equity ratio, suggesting manageable leverage levels. The return on equity has improved significantly over the years, reflecting enhanced profitability and efficient use of equity. Despite these positives, the equity ratio indicates a relatively low proportion of equity in the asset base, which could pose risks during financial downturns.
Cash Flow
74
Positive
The cash flow position is strong, with consistent positive free cash flow over recent years. The operating cash flow has shown resilience, even when net income was negative, suggesting solid operational efficiency. However, the free cash flow growth rate has fluctuated, indicating potential volatility in cash generation capabilities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.45B3.57B3.79B3.29B3.18B3.17B
Gross Profit4.03B3.57B3.79B3.29B3.18B3.17B
EBITDA1.77B1.66B1.80B0.000.00-7.01M
Net Income1.68B1.95B2.05B-204.85M309.51M-1.69B
Balance Sheet
Total Assets125.57B122.60B122.70B120.17B137.87B150.36B
Cash, Cash Equivalents and Short-Term Investments11.79B26.06B15.58B13.60B23.05B29.83B
Total Debt10.16B12.53B10.08B10.30B12.74B16.54B
Total Liabilities114.10B110.95B112.73B112.37B131.69B144.57B
Stockholders Equity11.47B11.65B9.98B7.80B6.17B5.78B
Cash Flow
Free Cash Flow-380.50M1.50B1.66B8.32B-662.86M-209.91M
Operating Cash Flow-373.10M1.53B1.77B8.38B-551.54M-64.47M
Investing Cash Flow-1.00M39.15M7.08M44.09M-69.07M-6.53M
Financing Cash Flow-1.08B-315.03M-2.73M2.37B42.93M-331.00K

Banca Monte dei Paschi di Siena SPA Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.72
Price Trends
50DMA
7.79
Negative
100DMA
7.47
Positive
200DMA
6.79
Positive
Market Momentum
MACD
0.01
Positive
RSI
44.81
Neutral
STOCH
8.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BMPS, the sentiment is Neutral. The current price of 7.72 is below the 20-day moving average (MA) of 7.85, below the 50-day MA of 7.79, and above the 200-day MA of 6.79, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 8.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:BMPS.

Banca Monte dei Paschi di Siena SPA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
18.83B8.4412.35%6.24%-0.56%2.54%
79
Outperform
19.62B8.1013.15%7.71%2.23%72.08%
70
Outperform
11.34B17.1327.30%3.99%2.97%4.64%
70
Outperform
€19.89B5.8515.13%11.14%-5.31%
70
Outperform
14.94B11.555.90%-19.78%7.06%
63
Neutral
12.51B10.7327.81%5.60%12.46%26.82%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:BMPS
Banca Monte dei Paschi di Siena SPA
7.73
3.09
66.85%
GB:0RLA
Banco BPM S.p.A.
12.98
7.58
140.37%
GB:0MU6
BPER Banca S.p.A.
9.62
4.96
106.44%
GB:0QVF
FinecoBank SpA
18.54
3.73
25.19%
GB:0HBF
Mediobanca Banca di Credito Finanziario S.p.A.
19.18
4.80
33.38%
BNMDF
Banca Mediolanum SpA
20.22
8.52
72.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025